Gains in the market were led by pharma shares with Nifty Pharma, NSE's sub-index for pharma shares, rising 2.22 per cent.

Indian shares ended higher for the fourth straight day on Tuesday, with the Sensex gaining 118.45 points and the Nifty settling above the 10,300 mark. Gains in the market were led by pharma shares with Nifty Pharma, NSE's sub-index for pharma shares, rising 2.22 per cent.

The BSE Sensex and Nifty opened on a stronger note on Tuesday tracking global indices. However, profit booking was witnessed in the last hour of trade tracking weakness in European shares. The Sensex finally closed 118.45 points higher at 33,478.35 and the Nifty50 index settled 28.15 points or 0.27 per cent higher at 10,326.90.

Among Nifty stocks, Dr Reddy's Lab was the top gainer, up 5.26 per cent followed by Sun Pharma, Tech Mahindra, UPL, Bharti Airtel and Cipla, which rose 1.90-4.10 per cent. Bajaj Auto, Zee Entertainment, BPCL, NTPC, Lupin were the other prominent gainers in the Nifty.

Among non-Nifty stocks, Reliance Communications, closed 11.60 per cent higher after gaining as much as 14 per cent in intraday trade, amid reports that lenders of the debt ridden firm have approved the sale of its real estate assets in Delhi and Chennai to a Canada-based company.

HDFC Life, which recently debuted on the exchanges, jumped 8.26 per cent to close at Rs 385.50. The stock has rallied over 32 per cent from its issue price of Rs 290, since listing.

Market breadth remained positive with 1,465 shares out of 2,858 traded on BSE closing in the positive territory and 1,223 shares closing with losses.

Indiabulls Housing, Coal India, ITC and Ambuja Cements were the prominent losers in the Nifty, which lost between 1.10-1.80 per cent.